Stronger growth of 2.6 percent in Japan and 2.1 percent in the Eurozone would partly offset US economic expansion seen as moderating to 3.1 percent in 2006 from 3.6 percent this year, DBS said.
"We remain bullish about Japan's economic revival, which will be supported by an accommodative monetary policy, robust job growth and a recovery in asset prices," the report said.
The bank sees 8.8 percent growth in China along with stronger growth in South Korea, Taiwan and most of Southeast Asia.
DBS says monetary policy will be in transition with the US Federal Reserve expected to pause early in the year while the Bank of Japan and some Asian central banks continue tightening well into 2006.
"Asian currencies will likely strengthen next year as growth broadens, exports continue improving, and domestic interest rates rise," DBS said.
The bank foresees a gradual modest appreciation of the Chinese currency unit, the yuan, of about three to four percent against the dollar in 2006.